BitcoinBTC and cryptocurrencies have suffered a catastrophic price drop in the last year – 2023 has already gotten off to a rough start.
Subscribe to now to Forbes CryptoAsset and Blockchain Advisor and successfully navigating the recent bitcoin and crypto market crash
Bitcoin price has fallen below $17,000 per bitcoin from nearly $70,000 at the end of 2021 (although a viral memecoin has rocketed into the new year).
Now, with serious survival fears circling some of the world’s largest bitcoin and crypto companies, geopolitical strategist Peter Zeihan has outlined how the bitcoin price could fall below zero.
In a brutal bear market, what you need most is the latest information! Register now for the free CryptoCodex—A daily newsletter for traders, investors and crypto curious people to stay ahead of the market
Bitcoin price has plummeted over the past year, sparking fears that Bitcoin could go to zero — or … [+]
AFP via Getty Images
Bitcoin “serves no purpose, it’s not a store of value, it’s not a medium of exchange, and as we’ve seen, it’s a fraud haven if you want to decentralize outside of government control,” said Zeihan, author of The Accidental Superpower podcaster Joe Rogan .
“[Crypto] is now about to go to zero except for bitcoin which is likely to go negative because as we move into a carbon tax world you need to account for the energy to produce it in the first place.
Bitcoin is “now starting to be fairly valued,” Zeihan said. Bitcoin price “needs to drop another $17,000. This product has no intrinsic value.”
The bitcoin blockchain, a distributed digital ledger, is managed by so-called miners, who use powerful, energy-intensive computers to secure the network against bitcoins.
After China ousted bitcoin miners in 2021, the US became the world’s largest bitcoin mining country, contributing around 38% to the so-called bitcoin hash rate, according to the Cambridge Bitcoin Electricity Consumption Index.
Bitcoin mining uses a staggering amount of energy to power and cool computers, consuming as much electricity as all of Sweden in 2022, according to Digiconomist’s Bitcoin Energy Consumption Index.
Sign up for CryptoCodex now—A free, daily newsletter for those curious about crypto
Bitcoin price has suffered an almighty crash over the past year but remains well above it … [+]
Forbes Digital Assets
While renewable energy sources account for nearly 40% of Bitcoin’s energy consumption, the Bitcoin Energy Consumption Index puts the Bitcoin network’s carbon footprint at the same level as Hong Kong.
Carbon taxes have been introduced by countries around the world in recent years to reduce their carbon emissions. In June last year, Danish lawmakers agreed on the highest CO2 tax for companies in Europe. However, the US does not have a national-level carbon tax, as the Biden administration sees the idea as politically risky and difficult to get through Congress.
Despite Bitcoin’s price tumble over the last year, many are convinced that the price will eventually bounce back when Mark Cuban, billionaire shark tank star and Bitcoin critic-turned-crypto-investor, reveals when he would buy Bitcoin again.
“Bitcoin became an ideology,” Zeihan said. “People who really like bitcoin are convinced that it is the currency of the future, that decentralized ledger is the way to go, that anything controlled by a government agency is negative by definition, and if it’s done by the private sector it will be better, but that’s just not how currency works.”
Bitcoin’s scarcity, with a fixed supply of around 21 million bitcoins making it comparable to digital gold, has been cited by bitcoin bulls as the reason why it is superior to government-backed so-called fiat currencies that central banks can create.
“One of the craziest things about bitcoin is that there will never be more than X units of bitcoin [because] by default, that means it can’t be used for trading,” Zeihan said. “The whole idea of economic activity is that there is expansion, which means you need more currency to lubricate and manage that expansion. When currency is pegged to a certain number, monetary inflation occurs, and it’s one of the quickest ways to destroy an economic model.”
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.